Allied Seeks Permission For Asset Auction, New DIP Loan

Law360, New York (May 24, 2013, 6:09 PM EDT) -- Bankrupt Allied Systems Holdings Inc. has asked a Delaware bankruptcy judge to approve an auction of its assets, including a stalking horse bid and a $33.5 million replacement debtor-in-possession loan from its lenders Black Diamond Capital Management LLC and Spectrum Investment Partners LP.

The car hauler said in May 17 court documents that the new DIP loan will provide it $11.5 million in added financing and buy it more time to administer its bankruptcy and prepare for the asset sale. The proposed DIP loan refinances its...